An Alternative Rental Housing Scheme

This page is from the 2016 election campaign. I am leaving it here as a record.

There has always been an assumption that negative gearing must be possible so that the market will supply enough rental accomodation. I propose a different scheme that allows more people to build equity. An additional benefit to my scheme is that it increases labour mobility. The scheme would apply to people who own investment property while they themselves rent.

Under this scheme, renters would be able to deduct from the profit they make on their rental property the profit their landlord makes from them. This would allow renters to buy a rental property smaller than what they themselves require. For example, parents of children might not be in a position to borrow enough to be able to buy a family home. But they might be in a position to buy a one bedroom apartment. Or several people can get together and jointly acquite a rental property. Investment in property funds would also be eligible which would allow renters to invest in small increments.

Some people are not settled enough to commit to living in one place long-term. With my scheme people can move around and live in rental accomodation all over the country without being at a disadvantage compared with owner-occupiers. That makes it easier for workers to move around for the best work opportunities.